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08/08/2002PENSION ADVISORY COMMITTEE MEETING CITY OF CLEARWATER August 2, 2002 Present: Whitney Gray Acting Chair/Commissioner Hoyt P. Hamilton Committee Member/Commissioner Frank Hibbard Committee Member/Commissioner John Lee Committee Member John Schmalzbauer Committee Member Tom Jensen Committee Member Joseph Egger Committee Member Also Present: Richard Ebelke Interim Human Resources Director Scott Christiansen Pension Advisory Committee Attorney Deborah Ford Human Resources Analyst Brenda Moses Board Reporter The Acting Chair called the meeting to order at 9:05 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Pension Advisory Committee Attorney Scott Christiansen said at the July PAC (Pension Advisory Committee) meeting, a question regarding Police Officer Joseph Egger’s ability to serve as the PAC’s seventh member was discussed. He said the Pension Plan is silent with regard to whether or not a City employee can fill the seventh seat, however the City Code of Ordinances states that an employee is not permitted to serve in that position and must be a City resident. Mr. Christiansen requested City Attorney Pam Akin share her findings regarding this issue. Ms. Akin referred to the section of the City Code of Ordinances that lists the qualifications of the seventh member. She said the Code clearly delineates how employees are to serve on boards. In some instances, they are elected, in others they are appointed. Ms. Akin said after reviewing the Pension Ordinance and the City Code of Ordinances, it appears that the seventh member of the PAC could not be a City employee. In response to a question, Ms. Akin said the PAC appoints the seventh member. It was not an election. Ms. Akin said when the Commission adopts an ordinance, which is approved by referendum, it does not affect or change the other ordinances in the Code. She did not see a conflict with the provisions in the Pension Plan Ordinance versus the Code of Ordinances pertaining to the qualifications of the seventh member. In response to a question, Ms. Akin said Mr. Christiansen is responsible to advise the PAC on legal matters. It was remarked that the former seventh member had served in that seat for some time. When the subject of choosing a seventh member was discussed, several City employees expressed interest in the opening and no one challenged their ability to run for the seat. Concern was expressed that the recently appointed member did not have the opportunity to run against his opponent in an official election and cannot serve on other boards for which he may have been interested in applying. It was remarked that it was unfortunate that a mis-step occurred and was not corrected prior to the new member being sworn in. It was suggested in order to move forward, the City should re-post the opening and clarify the qualifications necessary for the position. It was remarked the City Clerk’s office could help locate interested parties and C-View TV may be able to post the opening. Officer Egger expressed his opinions regarding Ms. Akin’s interpretation of the Code and the Pension Plan. Ms. Akin said she would be happy to review any information that he wished her to review. After his comments, he left the dais at 9:42 a.m. Discussion ensued and it was remarked that two attorneys have concurred on the qualifications of a member. Concern was expressed that current political tensions brought this issue regarding the seventh member forward. A comment was made that regardless of the newly appointed seventh member’s vocation, the City, the PAC, and the Trustees must follow the law. In response to a question, Ms. Akin said the potential exists that if the seventh member is not validly appointed, actions taken by the PAC may be affected. Mr. Christiansen said should there be a tie vote, the seventh member’s validity is particularly crucial. He said his firm was not involved in the PAC election process. He reiterated there is nothing in the PAC rules or the Pension Ordinance that speaks to the process for a seventh member. He said his firm was not approached about the qualifications of the seventh member until the July PAC meeting. It was remarked that the decision to select the seventh member had been discussed and continued to a future meeting, and that Mr. Christiansen was present when the postponement occurred. Mr. Christiansen said an employee as the seventh member was never an issue at those meetings. Ms. Akin said that former Human Resources Administrator Paul O’Rourke did not consult with the Legal Department in advance of posting the opening for the seventh member, therefore staff was unable to advise the PAC of any potential conflicts. Mr. Christiansen said the issue is who decides if the seventh member is eligible to sit on the PAC, and whether he continues to serve until the PAC takes action to have him declared ineligible. It was requested that Ms. Akin’s memorandum to Mr. Christiansen, the seventh member’s research of the Code and the Pension Plan, and any other pertinent information, be provided to all PAC members before a final recommendation is made. The Acting Chair offered her apologies for the failure of the PAC to follow applicable guidelines. ITEM #2 – Selection of Chair and Vice-Chair Consensus was to postpone appointment of a Chair and Vice-Chair until a full board is present. ITEM #3 – Approval of Minutes of July 11, 2002 Member Jensen moved to approve the minutes of the regular meeting of July 11, 2002, as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. ITEM #4 – Employees to be heard T. J. Donnelly said he respects Ms. Akin’s determination, but was concerned that her memo was only presented today to Mr. Christiansen. He said the PAC has always acted in a professional manner, but encouraged them to be cautious about their decision regarding the seventh member issue. Steven Sarnoff said he was concerned about the seventh member issue, as an e-mail that was sent to all City employees indicated an employee could serve in the seventh seat on the PAC. Richard Harris said he felt the newly selected seventh member has been unfairly singled out. The PAC elected him fairly and now City staff is questioning that election. ITEM #5 – Action Items Review and Action on Employee Requests for Years of Service Pensions: Nancy Burgarella, Police Peter Clare, Engineering Geraldine Jones, Public Utilities Mary McCann, Customer Service Member Hamilton moved to recommend approval of the requests for Years of Service Pensions. The motion was duly seconded and carried unanimously. Review and Action on Employee Requests to Vest Pensions: 1. Cindi Herald, Solid Waste/General Services 2. Margaret Schultz, Public Utilities Member Jensen moved to recommend approval of the requests to vest pensions. The motion was duly seconded and carried unanimously. c. Approval of New Hires as Plan Members: As of July 24, 2002, the City had 1729.82 out of 1834.7 budgeted positions. Jarvis Sheeler was originally hired on April 15, 2002, as temporary; status changed to permanent and pension eligible as of July 1, 2002. Cornelius Legters was originally hired on May 21, 2002, as temporary; status changed to permanent and pension eligible as of June 29, 2002. Member Schmalzbauer moved to accept these employees into membership in the Pension Plan: Pension Elig. Name, Job. Class, & Dept./Div. Hire Date Date Jarvis Sheeler, Parks Svc. Technician I/Parks & Rec. 4/15/02 7/1/02 David Clark, Senior Electrician/Parks & Rec. 7/1/02 7/1/02 John Hunsucker, Sr. Marine Lifeguard/Marine & Aviation 6/29/02 6/29/02 Victor Roberts, Field Svc. Rep./Customer Svc. 7/1/02 7/1/02 Karen Sowada, Sr. Rec. Supervisor/Parks & Rec. 7/1/02 7/1/02 Cornelius Legters, Sr. Plans Reviewer/Planning & Dev. Svc. 6/29/02 6/29/02 Scott Reid, Police Recruit/Police 7/15/02 7/15/02 Mark Richardson, Sr. Rec. Supervisor/Parks & Rec. 7/15/02 7/15/02 Leah Provost, Police Com. Operator Trainee/Police 7/15/02 7/15/02 Elizabeth Westerfield, Accounting Clerk/Gas 7/15/02 7/15/02 Carol Larkins, Police Comm. Operator Trainee/Police 7/15/02 7/15/02 David Bruneau, Police Recruit/Police 7/15/02 7/15/02 Aleksander Gregoire, Police Recruit/Police 7/15/02 7/15/02 Matthew Beery, Police Recruit/Police 7/15/02 7/15/02 ITEM #6 – Pending/New Business Steven Palmer – Hearing for Non-job-connected Disability Request Mr. Christiansen said Steven Palmer is a general employee who falls under specific rules for disability claims. He reviewed the procedure to process a disability claim, the applicable criteria, and exclusionary factors the PAC is to consider. Mr. Palmer suffered a heart attack in 1995, had a number of surgeries, had another heart attack in 1996, had three angioplasties, and has been diagnosed with severe coronary artery disease. He was employed in 1980 as a tradesworker. He had a preemployment physical, which was found to be within normal limits. Medical records were provided from doctors at Morton Plant Hospital and Largo Medical Center. The IME (Independent Medical Examination) doctor indicated that Mr. Palmer is disabled and cannot perform jobs that require exertion, and that he could only perform part-time desk jobs. The doctor indicated Mr. Palmer has a significant history of risk factors including smoking heavily for a long period of time, and weight and family history issues. He further stated the use of cocaine was not related to Mr. Palmer’s heart problems. In response to a question, Interim Human Resources Administrator Richard Ebelke said the City has no alternative positions for Mr. Palmer and no part-time desk positions. Mr. Palmer said he has enjoyed working for the City for 22 years. Steven Sarnoff, representative for Mr. Palmer, said Mr. Palmer’s condition began over two years ago. After he experienced health problems, he was placed on light duty for approximately one year. He was transferred to the Solid Waste Department and can no longer perform the duties necessary in that position. In response to a question, Mr. Ebelke said the City is not contesting this disability application. Member Lee moved to recommend approval of Steven Palmer’s non-job-connected disability request. The motion was duly seconded and carried unanimously. Robert Housholder – hearing for Job-connected Disability Request Mr. Christiansen said Robert Housholder is a firefighter and falls under specific criteria for disability pensions. He said the procedure for granting a disability claim for a firefighter is the same as for general employees, however the criteria and exclusionary factors are different. Robert Housholder asked if disability pensions include COLAs. Human Resources Analyst Deborah Ford said COLAS are included. Mr. Christiansen said in September 2001, Mr. Housholder suffered sudden cardiac death while on the job. He was resuscitated and recovered. He was given cardiac catheritzation. Doctors indicate he has severe heart disease. He has had angioplasty and an AICD implant to monitor and restart his heart. In December 2001, a cardiovascular doctor report indicated that Mr. Housholder’s attack happened as a result of wearing his full suit during the job. The doctor stated that heart attack can occur during severe emotional stress. He felt Mr. Housholder’s smoking contributed to his disease, but was not the cause of the attack. The doctor also indicated some of Mr. Housholder’s limitation, and reported his condition is permanent and is not expected to improve. Mr. Housholder cannot be exposed to magnets or magnetic fields. The IME indicated Mr. Housholder was physically unable to perform as a firefighter due to his cardiac history and the AICD implant. The report also indicates that Mr. Housholder’s disability is job-connected. Mr. Ebelke said the City is not contesting the claim. Member Hamilton moved approval of Robert Housholder’s job-connected disability request. The motion was duly seconded and carried unanimously. Evers Maxie – Set Hearing Date for Non-job-connected Disability pension Mr. Ebelke requested Ever Maxie’s non-job-connected disability pension request be heard at the September 12, 2002, PAC meeting. Consensus was to so schedule. Laura Davis – Pension Buy back Issue Ms. Ford said Ms. Davis has withdrawn her request to buy back her pension. Discussion of Ordinance to Comply with EGTRRA Mr. Christiansen referred to an updated version of the changes to the Pension Plan as required by Federal statute. He reviewed the changes to the ordinance and requested the PAC make a recommendation to the Pension Trustees Board. In response to a question, he said there are various IRS rules with respect to which Pension Plan funds are taxed and the City’s actuary is to track those issues. Member Jensen moved to recommend approval of the suggested changes to the ordinance to comply with EGTRRA. The motion was duly seconded and carried unanimously. Mr. Christiansen said he wanted to make it clear that the changes recommended for adoption by the PAC were dated July 31, 2002. ITEM #7 – Director’s Reports – None. ITEM #8 – Committee Members to be Heard Member Jensen suggested Pension Plan changes are dead and would not be considered. He asked if it were permissible to speak to PAC members outside this meeting regarding that matter, or whether the Sunshine Law would apply. Mr. Christiansen said the Sunshine Law applies and that Mr. Jensen should not approach PAC members outside the meetings as there could always be potential issues or items that could come before the PAC. Mr. Christiansen said he had no knowledge of those items being “dead”, as they could still be considered during negotiations. He said the PAC could recommend that benefit issues and the revisions to the Pension Plan be addressed separately. In response to a question, Mr. Ebelke said the negotiations between the City and the unions are on hold but would continue. Currently, the IAFF and CWA are in negotiations regarding a labor contract. The City is willing to continue negotiations at any time. Member Jensen said the issue of the seventh member as a resident/employee was raised more than once and no objections were raised. The PAC followed what they thought was proper procedure at the time that the seventh member was selected. He said the PAC has heard another interpretation of the Code that is outside of the Pension Plan language. It was suggested once the issue regarding the seventh member is resolved, that the PAC consider incorporating appropriate language in the Pension Ordinance to clarify the seventh member’s qualifications. Mr. Christiansen said it is the PAC’s function to make recommendations to the Board of Trustees with respect to the Pension Plan. Member Lee said he felt that many questions regarding the seventh member’s qualifications remain unanswered. Member Hamilton said the information heard at today’s meeting indicates that an employee could not be appointed to the seventh seat. He said the e-mail from Ms. Marzola on behalf of Mr. O’Rourke was a mis-statement, which created a succession of mis-steps which need to be corrected. Member Hibbard said this is an issue regarding interpretation of the law, not the vocation of the newly selected seventh member. He said although he felt it unfortunate that the seventh member was unable to participate in the PAC election, the law must be followed with respect to the seventh member position. Member Schmalzbauer felt current political tensions have prompted this issue regarding the seventh member’s qualifications. Member Gray said she had concerns regarding the selection of the seventh member when the topic first arose and should have voiced her concerns at that time. She said Finance Director Margie Simmons’ decision to advise the PAC of the potential conflict regarding an employee serving as the seventh PAC member should be respected. She said she expects staff to advise the PAC and other entities of potential conflicts such as this one. She said mistakes are made in other lines of work and steps are taken to ensure conflicts do not occur in the future. She expressed embarrassment that this unfortunate situation has occurred. Mr. Christiansen said regardless of whom is currently in the seventh seat, the PAC must follow the law. Mr. Christiansen said there is nothing that speaks to the Finance Director’s role regarding the PAC. The Board of Trustees’ rules state the Finance Director shall serve as the Treasurer to the Trustees. Discussion ensued and it was suggested that further discussion is needed regarding the Finance Director’s official capacity to the PAC. Mr. Christiansen said he supports City staff bringing forward information that would help the PAC comply with the law. Mr. Christiansen reminded PAC members to file their Form 1 Financial Disclosure Forms. ITEM #9 - Adjournment The meeting adjourned at 10:59 a.m.